Rs 1,203 crore fraud in PNB Bank, Sintex at large
New Delhi : Punjab National Bank (PNB) on Wednesday reported another borrowing fraud worth Rs 1,203 crore by the troubled Ahmedabad-based Sintex Industries Ltd.
In a regulatory filing on Wednesday, the government-owned PNB said it has made a provision of ₹ 215.21 crore, which is required by law, after it detected the fraud at its corporate banking branch in Ahmedabad.
"Reporting of borrowal fraud of Rs 1203.26 crore in NPA account of M/s Sintex Industries Ltd (SIL) at Large Corporate Branch at Ahmedabad, Zonal Office, Ahmedabad," PNB said in the regulatory filing.
Sintex is a household name in India and is better known for making plastic water tanks. Sintex group is owned by Sintex Plastics Technology Ltd that demerged from Sintex Industries in 2017.
Amid coronavirus pandemic and poor economic conditions, the banks are trying to recover the money from NPAs and are locating the companies which have taken huge loans and are not repaying them for any reason.